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Telkom Indonesia - ERP Cloud

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Company: Telkom Indonesia
Company Description: Telkom Indonesia is the largest Telecommunication company in Indonesia, a state-owned enterprise, providing wide range of service spanning from Telecommunication, Information, Media, Edutainment, and Service.
Nomination Category: Products & Product Management Categories
Nomination Sub Category: Best New Product or Service of the Year - Software - SaaS Enablement as a Service

Nomination Title: ERP Cloud Solution for Agro Industry

Tell the story about this nominated product or service (up to 650 words). Describe its function, features, benefits, and performance to date.

Competition in Indonesian agroindustry become more intense as an impact of ASEAN free trade area (AFTA) regulation in 2015. Therefore, it requires companies that focus in agroindustry to increase their competitiveness through enlarged production scale and services as well as improved accuracy of data transaction. Based on research, great challenges to optimize and improve companies’ performance for most agro companies in Indonesia are the extent of the coverage area, the variety of commodity products, an inaccurate information regarding data and performance as well as uncommon organizational structures with diverse business processes within company. These challenges are even more difficult for some firms that lack of competence in IT capabilities for both human resources and infrastructure, and incapable financing to do some investments.|

To overcome these challenges, Telkom develops ERP services that equipped with a complete function modules which include back end and front end application modules for agro companies. This service is developed by adopting cloud computing technology with SAP/4 HANA and managed service offering (application bundling, network, hardware, data center, service management and implementation services) with monthly based offering per user to extent a demand from market that lack of IT resources and funding. This is the first managed service solution for ERP SAP on Cloud in Indonesia

ERP SAP on Cloud which is developed for agro industry by Telkom include:

Telkom with SAP Principal conducted a study to get a harmonization and standardization pattern of business processes for annual crops and seasonal crops that are unique factors for Indonesia agroindustry. Hence, managed to compile a Global Template for these two commodities which will be used as a reference for further implementation to Indonesian agro companies.

Provide application for plantation management and plantation business process management plant plantation management which include:

-Business Development: Business Planning & Consolidation and Business Intelligent,
-Plantation Management: Modules for Annual Plantation and Seasonal,
-Production Management: Material Management, Plant Maintenance, Production Planning, Quality Management, Project System.
-Support System: Financial and Controlling, Sales and Distribution, Human Capital Management

Guarantee the legality of the entire application licenses and Annual Technical System (ATS) during the period of managed services and ensure a support availability from the principal applications on an ongoing basis.

Provide managed service for cloud infrastructure and data center, hardware devices and connectivity from the data center to the customer's internal network, and ensure quality of service in accordance with the SLG.

Implementation is done in one of the largest agro holding company in Indonesia (PTPN) through two phase, which is

Pilot Project is conducted in PTPN and two of its subsidiary as a role model for the ERP on Cloud implementation.

Roll Out method in 13 PTPN subsidiaries which is scattered across Indonesia through 4 stages of roll out with a well-planned schedule and tight, therefore it has been successfully implemented within 16 months.

ERP on Cloud that has been implemented in in 14 PTPN’s units, has successfully integrated 217 factories and 258 farms, area of 457,794 hectares and generate 3,542 licensed SAP users. Provide revenue for Telkom Group with a revenue value of IDR 438,371,980,000 (exclude VAT) during five years’ contract. Value obtained from the monthly charge managed service scheme (OPEX) of IDR 2,011,500 per user per month.

For Customers (PTPN):

Labor cost reduction around 1/5 labor in every contract per farm. It was estimated IDR 299 million of cost saving per contract/farm in 57 contracts.

Cost efficiency 10%-12%, coming from tender process through e-procurement for fertilizer and diesel fuel (equal to IDR 2 billion).

Finally, with the implementation of SAP ERP on Cloud for PTPN Holding can provide benefits for Indonesian agroindustry in improving internal performance, business processes effectiveness and business operational efficiency with real time and integrated ERP system.

In bullet-list form, briefly summarize up to ten (10) of the chief features and benefits of the nominated product or service.

-Challenges for agro-companies in Indonesia are the coverage area, variety of commodity products, an inaccurate information regarding data and performance and uncommon organizational structures with diverse business processes within company
-Telkom developed ERP services, cooperate with SAP Principal to conduct Global Template which will be used as a reference for further implementation to Indonesian agro-companies
-Telkom ERP Cloud provides application for plantation management and plantation business process management plant plantation management which include
-ERP on Cloud that has been implemented in in 14 PTPN’s units, has successfully integrated 217 factories and 258 farms, area of 457,794 hectares and generate 3,542 licensed SAP users.
-Benefit ERP Cloud: revenue for Telkom Group with a revenue value of IDR 438 billion during five years’ contract. Value obtained from the monthly charge managed service scheme (OPEX) of IDR 2 million per user per month